Seventy-Five Percent Of Consumers Fall Off The Warranty Cliff…How to Keep Them in Your Service & repair Ecosystem

Most drivers have the same experience. The odometer reaches a specific mileage and it hits them. The car's warranty is officially expired. At that precise moment, 75% of your customers have started looking for a new go-to shop if the car ever needs service over the next decade;* maybe that local garage everyone talks about. Going back to the dealership quickly fades into the rearview mirror.  

*The average vehicle age in the U.S. is older than 12 years.

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We call this the 'warranty cliff,' and it’s where brand loyalty often goes to die.

But brands don’t have to accept the mass exodus, there are ways to get customers back.

Turn post warranty breakdowns into brand and service wins With Extended roadside subscriptions

We’ve got a pretty clever strategy up our sleeve. Introducing Extended Roadside, a branded consumer membership program that delivers the critical hands-on help when a customer has a breakdown combined with access to perks like discounts on hotels, restaurants, entertainment - the things that add value even when the customer’s car is parked safely in the garage.

How does this work to bring a customer back? This branded program connects with owners whose vehicles are nearing warranty expiration. Branded email and an enrollment website educate the consumer on extended roadside. Additional tactics including Search Engine Marketing, social media advertising and targeted outreach to customers who recently had a breakdown keep the program top of mind.

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when a breakdown occurs, service revenue and long-term Loyalty Begin

With your post warranty customers secured by Extended Roadside, you are now in a position to support them when things go wrong: a breakdown. This is the single biggest opportunity to win a customer back for good (and grow your service revenue.) Here’s why: when a car needs to be towed, it's usually not for something minor. Over 85% of the time, it's because of a mechanical issue that needs a serious repair.

The customer leverages their membership benefits for the tow and once the customer’s there, the dealer creates the repair order, fixes the car with the right parts, and suddenly a stressful event becomes a smooth, positive experience. The car’s back on the road, and just like that, the owner is back in the OEM’s ecosystem.

program membership creates both immediate and long-term roi for service departments

With Extended Roadside, the "warranty cliff" becomes a bridge. The ROI is two-fold: immediate and enduring. When a breakdown occurs, the brand isn't just a name on a truck; it’s the hero of the moment. That rescue leads to immediate revenue—often exceeding $750 in repair orders—but the real win is a nearly 20% lift in long-term loyalty.

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We’ve found that a positive experience during a moment of distress does more than fix an engine; it reinforces a bond. Between household-wide protection and tangible savings on maintenance, the consumer gains much-needed peace of mind. Ultimately, the brand ceases to be a one-time transaction and becomes a genuine partner in the customer’s ownership journey.

 
 

Meet the Author: Kate Patty - Director, Marketing Solutions

Kate leads the go-to-market of Agero's Extended Roadside product, a white-label roadside assistance and loyalty program sold directly to consumers. Extended Roadside reconnects client with customers to keep them within their ecosystem. When not at work, Kate enjoys reading and spending time with her husband, daughter and chocolate lab Penny.
 
 

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